1. Asian Tigers, NICs, and BRICS

2. Not this kind of tiger

3. The Four Asian Tigers
Hong Kong
Singapore
South Korea
Taiwan

5. Keys to economic success:
They embraced free market economies
Encouraged foreign investment
Capitalized on low paid labor
They invested aggressively in education and infrastructure and switched to high tech manufacturing
Today Hong Kong and Singapore are leaders in banking/finance (they switched to quaternary production)

6. Hong Kong

7. Quick review of “sectors of production”:
Primary production: agriculture, mining
Secondary: manufacturing
Tertiary: Basic services: transportation, retail
Quaternary: Business services (Finance, insurance, advertising, marketing)
Quinary: Geared toward innovation (Scientific research, higher education)

8. NICs (Newly Industrialized Countries)

9. NICs (cont.) In the 1970s & 80s, the Asian Tigers were the NICs
Today’s NICs: South Africa, Mexico, Brazil, China, India, Malaysia, the Philippines, Thailand, and Turkey

10. Special Economic Zones in China
As part of its economic reforms and policy of opening to the world, between 1980 and 1984 China established special economic zones (SEZs) in Shantou, Shenzhen, and Zhuhai in Guangdong Province and Xiamen in Fujian Province and designated the entire island province of Hainan a special economic zone.

12. Comparative Advantage
A country has the ability or resources to produce a good or service at less cost and more efficiently than other countries. As such these advantageous goods and services are selected for industrial production over other possible alternatives.

13. BRICS
Brazil, Russia, India, China, and South Africa (called “emerging markets” in the investment world)